In this model, two levels of control are proposed. Performance is preserved by an automatic control system in well-learned tasks under low-stress conditions. When task demands are indicated by an “effort monitor” that goes beyond the capacity of the lower automatic system, a higher supervisory controller is turned on to start a compensatory control response. This response ends up involving the mobilization of effort to protect task performance. One thing to note about the Compensatory Control Model is that effort is a limited resource. Thus, if effort allocation adequately and briefly maintains primary task performance, an extended period of intense stress may exhaust resources to the point where performance reductions are present.

Latent decrements may also happen outside of primary tasks. This can be seen as peripheral tasks performance being impaired through attentional tunnelling and heuristics in non-primary tasks. Considering military settings, mood changes or adverse reactions to teamwork can diminish results from allocating effort to maintain primary task performance. Allocating effort is deemed the only protection strategy the supervisory controller can start. The second strategy would be to adjust performance targets.